Time on Credit Report

• Generally, a bankruptcy will remain on your credit for 10 years. However, a foreclosure is usually removed after 7 years.
  
  

Effects

• Most mortgage companies frown on applicants who have a foreclosure on the record. However, the same is true for a bankruptcy that includes a home.
  
  

Home Status

• If your home is foreclosed on, you will lose the home. However, if you file bankruptcy that includes your home, you may be able to keep it depending on the specific laws in your state.
  
  

Alternatives

• Contact your lender to find out if you are eligible for a refinance or a modification of your mortgage. If you know that you can't afford to pay your mortgage even if the bank approves one of these options, consider asking for a deed in lieu of foreclosure. In this case, you turn the house over to the bank and can walk away free and clear.
  
  

Get Advice

• Before you make a decision about your course of action, you should consult an attorney or certified credit counselor.